Stock markets may open on a flat note

7 May 2024 , 08:36 AM

The benchmark Sensex and Nifty indices are expected to kick off on a flat-to-positive note on May 7, with trends in the GIFT Nifty indicating a subdued start but with a modest gain of 10 points. Let’s delve into the key factors influencing the market sentiment and potential trading opportunities for the day ahead.

On the preceding trading day, equity markets witnessed a mixed session. Despite opening nearly 0.5% higher, the markets ended flat, with the Sensex marginally up by 0.02% and the Nifty down by 0.15%. The trading session saw notable movements in various sectors, with both gainers and losers making their mark.

Kotak Mahindra Bank emerged as the top gainer, soaring over 5%, trailed by Tata Consultancy Services and Hindustan Unilever with gains of 2.1% and 1.8%, respectively. However, Titan Co Ltd faced a setback, experiencing a sharp decline of 7.2%, its steepest drop in 22 months, following weak Q4 earnings. Other notable losers included SBI and NTPC, shedding 2.9% and 2.31%, respectively.

The Nifty Realty index exhibited a robust performance, surging by 2.76%, while the Nifty PSU Bank index faced a notable setback, dropping by 3.66%. Additionally, sectors such as consumer durables and oil & gas witnessed declines of 2.55% and 1.75%, respectively.

Global Market Outlook:

Asian stocks commenced the day with optimism, buoyed by Wall Street’s expectations of potential interest rate cuts by the Federal Reserve. Japan’s Nikkei 225 surged by up to 1.6%, while Australian shares rose by 0.7%. Similarly, US markets experienced a notable three-day rally, driven by speculation surrounding interest rate adjustments by the Federal Reserve.

Institutional Activity:

Foreign Institutional Investors (FIIs) were net sellers, offloading shares worth ₹2,168.75 Crore, while Domestic Institutional Investors (DIIs) infused ₹781.39 Crore worth of stocks into the market on May 6.